Credit Agricole SA · EURONEXT:ACA
Credit Agricole SA — Q3 2002 Earnings Presentation
64 slides from Credit Agricole SA's earnings presentation, November 2002
Slide 1: Third Quarter Results Presentation
Third Quarter Results Presentation November 2002
Slide 2: Consolidated income statement of Crédit Agricole S.A. Third Quarter 2002
Consolidated income statement of Crédit Agricole S.A. Third Quarter 2002 Confirmation of group’s solid fundamentals Continued implementation of strategic objectives Impacted by equity markets
Slide 3: Consolidated income statement: End of September 2002
Consolidated income statement of Crédit Agricole S.A. End of September 2002 Net income group share: € 721 m : -19.1% (excl. Bisel) Net income group share before goodwill: € 946 m : -11.9% (excl. Bisel) ROE 9 months annualised : 8.7%
Slide 4: Consolidated Results - first 9 months 2002
Consolidated Results of Crédit Agricole S.A. Consolidated income statement - first 9 months 2002 Evolution over 9 months € m 9M-01 9M-02 % change excl. Bisel Net Banking Income 4 502 4 027 (10.6%) (0.9%) Operating costs (3 135) (2 916) (7.0%) +3.3% Gross Operating Income 1 367 1 111 (18.7%) (10.4%)
Slide 5: Consolidated Results - third quarter 2002
Consolidated Results of Crédit Agricole S.A. Consolidated income statement - third quarter 2002 pro forma % change % change € m Q3-02 Q3-02 Q3-01 excl. Bisel Net Banking Income 1 407 1 146 (18.6%) (8.1%) Operating costs (1 031) (937) (9.1%) +1.3% Gross Operating Income 376 209 (44.4%) (35.1%) Risk-r
Slide 6: Highlights from the business divisions
Highlights from the business divisions Continued strong growth of the French Retail Banking activities and results Sustained activity and results in Asset Management, Insurance and Private Banking Good control of operating expenses and risk-related costs in Corporate and Investment Banking, which li
Slide 7: French Retail Banking
French Retail Banking Continued strong growth of activities and results of French Retail Banking Caisses Régionales Pre-tax income: € 474 m / 9M-02 Continued growth of commercial activity 42% Constant improvement of operating results Low risk-related costs this quarter Increased contribution to quar
Slide 8: French Retail Banking – Caisses Régionales: deposits
French Retail Banking – Caisses Régionales Growth in deposits outstandings Deposits outstandings increased by € 12 bn over one year Strong increase in home-purchase savings schemes, passbook accounts and life insurance products Sustained growth of current accounts Good resilience of mutual funds in
Slide 9: French Retail Banking – Caisses Régionales: loans
French Retail Banking – Caisses Régionales Continued growth of loan outstandings Maintained high level of new MLT loans (+13.9% over the first 9 months) Sustained loans demand from households, mainly in home-finance (+ € 5 bn over 1 year) € bn % change 208.2 211.0 200.9 9.1 Q3-02 / Q3-01 9.3 8.9 16.
Slide 10: Caisses Régionales: expenses and risk-related costs
French Retail Banking – Caisses Régionales Continued improvement of expenses and risk-related costs Increased number of products per current account : 7.31 vs. 7.23 at 30 June 2002 Continued improvement of the Caisses Régionales cost / income ratio Risk-related costs stable over 9 months, after a mi
Slide 11: Caisses Régionales financial performance
French Retail Banking – Caisses Régionales Strong increase of the Caisses Régionales’ financial performance Net Banking Income increased by 3.6% to € 2.3 bn Controlled increase of operating costs (+3.4% at € 1.5 bn) Strong decline in risk-related costs (-30.7% at € 0.1 bn) Strong rise in consolidate
Slide 12: French Retail Banking – Subsidiaries
French Retail Banking – Subsidiaries Steady growth of Sofinco’s business in France Strong growth of managed loans (+20.9% over one year) NBI of the French activities increased by 9.5% over 9 months Improved costs / income ratio (60.8% 9M-02 vs. 62.9% 9M-01) Risk-related costs stable (104 bp) Strong
Slide 13: Q3-2002 results of French Retail Banking
French Retail Banking Q3-2002 results of the French Retail Banking division Q3-01 % change % change €m pro forma Q3-02 Q3-02/Q3-01 9M-02 9M-02/9M-01 Net Banking Income 185 189 +2.2% 589 +6.9% Operating costs (119) (117) (1.7%) (349) +4.5% Gross Operating Income 66 72 +9.1% 240 +10.6% Risk-related co
Slide 14: Asset Management, Insurance and Private Banking
Asset Management, Insurance and Private Banking Good sustained growth of the division’s activity and results despite severe market crisis Pre-tax income: € 499 m / 9M-02 Deteriorating stock markets and arbitrage of client portfolios towards lower-risk products 45% Sustained activity and contribution
Slide 15: Growth of assets under management
Asset Management, Insurance and Private Banking Good sustained growth of assets under management despite difficult market conditions Increase of assets under management over one year (+4.8% excl. double counting) despite a slight decrease in the last quarter A positive inflow, but outstandings affec
Slide 16: Asset management
Asset Management, Insurance and Private Banking Asset management Dynamic growth of inflow (+ € 1.8 bn in Q3-02) and increased outstandings over one year (+5.7%) despite a limited decline in the last quarter Continued international development and rationalisation of management activities Assets under
Slide 17: Private banking
Asset Management, Insurance and Private Banking Private banking NBI decreased by 11.9% over 9 months and 12.8% vs. Q3-01 due to the further deterioration of the stock market crisis Decline in operating expenses (-7.9% vs. Q3-01) following the implementation of the cost-reduction programme Assets und
Slide 18: Life insurance
Asset Management, Insurance and Private Banking Life insurance Strong growth of inflow (+4.5% vs. Q3-01) and outstandings Despite the very unfavourable market conditions in Q3-02, stability of the net financial income over 9 months and of the financial reserves of Predica maintained (€ 3.2 bn) Unrea
Slide 19: Property and casualty insurance
Asset Management, Insurance and Private Banking Property and casualty insurance Remarkable growth of activity and increased turnover for all products Continued rise in client portfolio (approx. 100 000 new contracts in Q3-02) Claim / policy ratio still low, despite the costs of floods in the Gard re
Slide 20: Q3-2002 results for Asset Management, Insurance and Private Banking
Asset Management, Insurance and Private Banking Q3-2002 results for the Asset Management, Insurance and Private Banking division Q3-01 % change % change €m pro forma Q3-02 Q3-02/Q3-01 9M-02 9M-02/9M-01 Net Banking Income 343 397 +15.7% 1 138 +10.2% Operating expenses (183) (208) +13.7% (621) +14.6%
Slide 21: Corporate and Investment Banking
Corporate and Investment Banking Good control of expenses and risk-related costs in Corporate and Investment Banking, which limited the decline of its contribution Pre-tax income: € 363 m / 9M-02 Severe financial crisis affecting market- and credit-related activities 33% Slowdown of the Capital Mark
Slide 22: Investment Banking and Capital Markets
Corporate and Investment Banking Investment Banking and Capital Markets affected by deteriorating market conditions Slowdown of Fixed Income business in Q3-02 in an unfavourable interest rate environment Equity business affected by worsening markets Major transactions in Capital Investment business
Slide 23: Resilience of the Financing activity
Corporate and Investment Banking Resilience of the Financing activity Continued asset reallocation and reduction strategy steered means a drop of NBI Steady decline of operating costs Risk-related costs stable in spite of deteriorated credit environment Gross Operating Income Risk-related costs €m €
Slide 24: Results of the first months by activity
Corporate and Investment Banking Results of the first 9 months by activity Investment Banking and Financing activity Capital Markets €m 9M-01 9M-02 9M / 9M 9M-01 9M-02 9M / 9M NBI 688 602 (12.5%) 1 321 1 199 (9.2%) Charges (458) (436) (4.8%) (1 020) (931) (8.7%) GOI 230 166 (27.8%) 301 268 (11.0%) R
Slide 25: Q3-2002 results for Corporate and Investment Banking
Corporate and Investment Banking Q3-2002 results for the Corporate and Investment Banking division Q3-01 % change % change €m pro forma Q3-02 Q3-02/Q3-01 9M-02 9M-02/9M-01 Net Banking Income 604 479 (20.7%) 1 801 (10.4%) Operating expenses (462) (426) (7.9%) (1 367) (7.5%) Gross Operating Income 142
Slide 26: International Retail Banking
International Retail Banking International Retail Banking ; impact of IntesaBci ; increased contribution from other European subsidiaries Pre-tax income: € -28 m / 9M-02 Withdrawal from Banco Bisel : no impact on the Q3-02 results -3% Increased activity from the subsidiaries Allocated capital: € 2.9
Slide 27: Increase in activity of majority-owned European subsidiaries
International Retail Banking Strong increase in activity and income from the majority-owned European subsidiaries Rapid development of the activity from majority-owned European subsidiaries - strong progression of Lukas results - very good performance of other consumer credit activities Sustained gr
Slide 28: Implementation of IntesaBci's strategic plan
International Retail Banking Implementation of IntesaBci’s strategic plan Income from equity affiliates Announcement of IntesaBci’s strategic plan 12 September €m 219 Good resistance of recurring activities 180 Impact of provisioning of put option at market conditions at the end of September was lim
Slide 29: Q3-2002 results for International Retail Banking
International Retail Banking Q3-2002 results for the International Retail Banking division Q3-01 % change % change €m pro forma Q3-02 Q3-02/Q3-01 9M-02 9M-02/9M-01 Net Banking Income 273 118 (56.8%) 385 (41.8%) Operating expenses (157) (92) (41.4%) (264) (41.1%) Gross Operating Income 116 26 (77.6%)
Slide 30: Proprietary Asset Management and Other Activities
Proprietary Asset Management and Other Activities Negative contribution from the Proprietary Asset Management and Other Activities division, due to the charges on equity portfolios Pre-tax income: € -192 m / 9M-02 Impact of stock market crisis in Q3-02 on the equity portfolios (investments, portfoli
Slide 31: Q3-02 results affected by the equity markets
Proprietary Asset Management and Other Activities Q3-02 results affected by the equity markets Taking the strong deterioration of the markets and their extreme volatility in the third quarter into account : - equity portfolio valuation is based on a multi-criteria approach (average share price over
Slide 32: Q3-2002 results for Proprietary Asset Management and Other Activities
Proprietary Asset Management and Other Activities Q3-2002 results for the Proprietary Asset Management and Other Activities division Q3-01 % change % change €m pro forma Q3-02 Q3-02 / Q3-01 9M-02 9M-02 / 9M-01 Net Banking Income 2 (37) n.s. 114 (54.0%) Operating expenses (110) (94) (14.5%) (315) (5.
Slide 33: Strengthened shareholders' equity
Consolidated Results of Crédit Agricole S.A. Strengthened shareholders’ equity Shareholders’ equity group share increased by 0.9% this quarter Provisions and FGBR maintained at high level : € 2.5 bn in Q3-02 Weighted risk decreased by € 5.8 bn in first 9 months (+ € 1.3 bn at Q3-02) New reinforcemen
Slide 34: Appendices
Appendices
Slide 35: Q3-02 detailed consolidated income statement
Crédit Agricole S.A. Q3-02 consolidated results Q3-02: detailed consolidated income statement of third quarter French Asset Mgmt, Corporate & International Proprietary Retail Insurance and Investment Retail Asset Mgmt Total of €m Banking Private Banking Banking Banking & Other Activities divisions N
Slide 36: 9M-02 detailed consolidated income statement
Crédit Agricole S.A. Q3-02 consolidated results 9M-02: detailed consolidated income statement of first 9 months French Asset Mgmt, Corporate & International Proprietary Retail Insurance and Investment Retail Asset Mgmt Total of €m Banking Private Banking Banking Banking & Other Activities divisions
Slide 37: Geographical spread of assets
Crédit Agricole S.A. Q3-02 consolidated results Geographical spread of assets Gross customer credits and lease - finance outstanding June 01* Dec 01 € bn pro forma pro forma June 02 Sept 02 France 29.0 29.4 33.1 32.7 Other countries of the European Economic Community 12.5 12.8 12.3 14.5 Other Europe
Slide 38: Variation of risk-related costs
Variation of risk Variation of risk-related costs June 01 Dec 01 €m pro forma pro forma June 02 Sept 02 Gross customer outstandings 76 760 79 299 74 361 73 401 Doubtful loans 4 872 4 650 4 316 4 439 Reserves 3 328 3 049 2 698 2 715 Ratio of doubtful loans to gross outstandings 6.3% 5.9% 5.8% 6.0% Ra
Slide 39: Exposure to market risks
Variation of risk Exposure to market risks Change in first 9 months 2002 of exposure of Crédit Agricole S.A. to market risks VAR (99% - 10 days) 1st January - 30 September 2002 30 September 30 June €m Minimum Maximum Average 2002 2002 Interest rate risk - firm positions 15.3 34.3 23.3 31.0 19.5 Inte
Slide 40: General provisions and FGBR
General provisions and FGBR Variation by type and effect on the third quarter results June 01 Dec 01 Crédit Agricole S.A. (€ m) pro forma pro forma June 02 Sept 02 Liability provisions for sector risks and other provisions covering credit risks 593 553 439 393 (excl. doubtful) Country risk provision
Slide 41: Capital allocation methodology
Capital allocation Capital allocation methodology French Retail 5% of weighted risk (incl. 25% of the Caisses Régionales’ Banking risk-weighted assets) + goodwill Asset Management The highest of 6% risk-weighted assets or 3 months Insurance and of operating expenses Private Banking Insurance : 5% ab
Slide 42: International solvency ratio
Capital allocation International solvency ratio € bn June 01 Dec 01 June 02 Sept 02 Credit risks 98.0 94.0 86.6 87.5 Market risks 14.7 15.1 15.4 15.8 Total of weighted risks 112.7 109.1 102.0 103.3 Tier 1 14.0 14.8 15.1 15.2 Tier 2 5.8 9.4 8.9* 8.2 Tier 3 0.8 0.6 0.7 0.3 Deductions 9.2 14.9 15.0 13.
Slide 43: Weighted risks retained by division
Capital allocation Weighted risks retained to determine the capital allocated by division € bn June 01 Dec 01 June 02 Sept 02 French Retail Banking 58.6 59.2 62.0 61.1 of which Caisses Régionales 42.6 42.6 44.9 44.9 of which subsidiaries 16.0 16.6 17.1 16.2 Asset Mgmt, Insurance and Private Banking
Slide 44: Capital allocated to business divisions
Capital allocation Capital allocated to business divisions € bn June 01 (%) Dec 01(%) June 02 (%) Sept 02 (%) French Retail Banking 3.5 22.0% 3.2 21.9% 3.5 22.5% 3.3 21.2% Asset Management, Insurance and Private Banking 3.1 19.7% 3.0 20.6% 3.6 23.2% 3.5 22.4% Corporate & Investment Banking 5.1 32.1%
Slide 45: Breakdown of capital and earnings per share
Change in consolidated shareholders’ equity Breakdown of capital and earnings per share calculation Breakdown of capital : Dec 01 Sept 02 SAS Rue la Boétie 682 717 240 682 717 240 SNC Crédit Agricole transactions - 26 903 605 Shares held by Group companies * 2 009 482 4 334 482 Public (of which empl
Slide 46: Equity, FGBR and subordinated debt
Change in consolidated shareholders’ equity Equity, FGBR and subordinated debt €m Group Minority Total FGBR Subordinated share share debt 30 June 2001 (non pro forma) 12 122 3 186 15 308 1 528 6 891 31 December 2001 (non pro forma) 14 994 690 15 684 1 716 9 574 dividend paid in 2002 (535) (35) (570)
Slide 47: Contribution of the Caisses Régionales
French Retail Banking – Caisses Régionales Contribution of the Caisses Régionales € m- Aggregated results Q3-01 Q3 - 02 % changes 9M-02 % changes of the 45 Caisses Régionales pro forma consolidated by the equity method Net Banking Income 2 241 2 322 +3.6% 7 534 +3.7% Operating costs (1 478) (1 528)
Slide 48: Change in share of Crédit Agricole S.A. in Caisses Régionales
French Retail Banking – Caisses Régionales Change in share of Crédit Agricole S.A. in Caisses Régionales The Crédit Agricole Caisses Régionales have the legal status of ‘Sociétés à Capital et personnel variable’ : - their share capital is made up of nominal shares and cooperative certificates (capit
Slide 49: Increase in number of products per client
French Retail Banking Increase in the number of products per client: 7.31 in Q3-02 millions Number of products 15 % changes Q3/Q3 13.1 Current accounts = 12.1 Cards +4.2% 10 8.8 Services accounts +7.2% 7.2 PEA accounts +5.3% 5 4.6 Life insurance policies +2.3% 3.0 Property & Casualty +0.7% 2.2 insur
Slide 50: Key figures of SOFINCO
French Retail Banking Key figures of SOFINCO €m 9M-01 9M-02 % change 9M/9M Net Banking Income 488 550 +12.7% Administration costs (301) (328) +9.1% Depreciation (13) (14) +9.6% Gross Operating Income 174 207 +19.3% Risk-related costs (55) (70) +27.0% Net operating income 119 137 +15.7% Income from e
Slide 51: Key characteristics of the Finaref acquisition
French Retail Banking Key characteristics of the Finaref acquisition Acquisition of Finaref (after sale of Facet) and Finaref Sverige : - market share in French consumer credit business : around 4% - 6.5 millions individual cards ; € 4.5 bn credit outstandings managed Acquisition price € 2 525 m for
Slide 52: A major opportunity: the acquisition of Finaref
French Retail Banking A major opportunity: the acquisition of Finaref An acquisition that consolidates the group’s position : - strengthening its leading position in French Retail Banking and accelerating the expansion in Europe - access to a large client base and a durable partnership link with PPR
Slide 53: Increase in range of products and services
Asset Management, Insurance and Private Banking Increase in the range of products and services offered by the division Rationalisation of structures and increase in strong value-added products - alternative management : CAAIPG* - quantitative management: CPR AM* - services to issuers : CAIS Bank* -
Slide 54: Key figures of CAAM
Asset Management, Insurance and Private Banking Key figures of CAAM €m 9M-01 9M-02 % change 9M/9M Net Banking Income 242 276 +14% Of which commissions 232 256 +10% Operating costs (143) (166) +16% Gross Operating Income 99 110 +11% Financial revenue 18 1 n.a. Pre-tax income 116 111 (5%) Extraordinar
Slide 55: Key figures of Private Banking
Asset Management, Insurance and Private Banking Key figures of Private Banking €m 9M-01 9M-02 % change 9M/9M Net Banking Income 328 289 (11.9%) Operating costs (262) (254) (3.1%) Gross Operating Income 66 35 (47.0%) Risk-related costs 4 (15) n.a. Operating income 70 20 (71.4%) Income from equity aff
Slide 56: Key figures of Predica
Asset Management, Insurance and Private Banking Key figures of Predica €m 9M-01 9M-02 % change 9M/9M Net premia 7 212 7 303 +1.3% Management fees 585 667 +14.0% Net financial income 2 898 2 884 = Operating expenses (36) (42) +16.6% Distribution commissions (454) (525) +15.6% Technical result 74 70 (
Slide 57: Key figures of Predica: reserves
Asset Management, Insurance and Private Banking Key figures of Predica Reserves maintained at a high level at € 3.2 bn (+1.4% in 9 months) despite a decrease in the provisions for policy holders’ profit share due to the current market conditions Improvement of rating of bonds held in portfolio : 69.
Slide 58: Key figures of Pacifica
Asset Management, Insurance and Private Banking Key figures of Pacifica €m 9M-01 9M-02 % change 9M/9M Number of policies 2 711 571 3 040 751 +12.1% Number of claims 227 554 236 360 +3.9% Gross premium income 390.1 442.5 +13.4% C / P ratio 75.7% 71.2% Combined ratio * 98.0% 96.8% Sales commissions (6
Slide 59: Key figures of CAI
Corporate and Investment Banking Key figures of CAI €m 9M-01 9M-02 % change 9M/9M Net Banking Income 2 340 2 010 (14.1%) Operating costs (1 796) (1 628) (9.4%) Gross Operating Income 544 382 (29.8%) Risk-related costs (141) (139) (1.4%) Income from equity affiliates 53 72 +35.8% Net income on fixed
Slide 60: Major holdings in private equity
Corporate and Investment Banking Major holdings in private equity Holdings Sector Stake Acquisition Investment Market Cap date (€ m) (€ m) Marionnaud Parfumerie Sale of perfumes 9.70% 1998 52.0 56.2 Salins Production and sale International Holding of sea salt 41.83% 2000 38.8 Nd Elior Concession cat
Slide 61: Effects of the IPO preparation at Q3-01
Proprietary Asset Management and Other Activities Effects of the IPO preparation at Q3-01: reminder Of which effects linked to the IPO preparation €m Q3 - 01 Decentralisation impact FGBR Allocation Q3-01 Q3-02 Proprietary Asset Management pro forma on home-purchase “Guarantee to pro forma and Other
Slide 62: Consolidated income statement of Crédit Agricole Group
Financial elements for the Crédit Agricole Group Consolidated income statement of Crédit Agricole Group €m 9M-01 9M-02 % changes excl. Bisel Net Banking Income 11 739 11 509 (2.0%) +1.8% Operating expenses (7 827) (7 788) (0.5%) +3.6% Gross Operating Income 3 912 3 721 (4.9%) (1.7%) Risk-related cos
Slide 63: Consolidated capital of the Crédit Agricole Group
Financial elements for the Crédit Agricole Group Consolidated capital of the Crédit Agricole Group € bn Dec 00 Dec 01 Sept 02 Shareholders equity group share 25.8 28.4 29.5 FGBR 2.2 4.1 4.2 Subordinated shares 6.6 8.4 9.8 Total of weighted risks 268.7 280.6 282.8 International solvency ratio 10.2% 1
Slide 64: CREDIT AGRICOLE S.A.
KX CREDIT AGRICOLE S.A.